• USD/MXN initially dipped on Friday but recovered some ground as traders closely analysed the potential impact of U.S. tariffs under the incoming administration of President-elect Donald Trump.
• Mexico is expected to be the most adversely affected by Trump's proposed tariffs. Analysts indicated that Mexico's economy is likely to remain sluggish throughout the year.
• The Mexican peso touched an over two-year low against the dollar, before reversing course to rise 0.56%..
• At GMT 14:12, the pair was trading up 0.69% at 20.650.
• Immediate resistance is located at 20.965 (23.6%fib), any close above will push the pair towards 20.057(Higher BB).
• Support is seen at 20.545(Jan 2nd low) and break below could take the pair towards 20.366(38.2%fib).
Recommendation: Good to buy around 20.650 with stop loss of 20.450 and target price of 21.000
